Ten multiple choice questions

About financial accounting

1. MC Qu. 152 The following financial information is from Bronco ... The following financial information is from Bronco Company. All debt is due within one year unless stated otherwise. Retained Earnings $62,800 Supplies Equipment Accounts Receivable Deferred Revenue Accounts Payable Common Stock Notes Payable (due in 18 months) Interest Payable Cash 37,200 72,500 9,000 5,900 14,500 23,300 30,000 6,200 24,000 What is the amount of current liabilities? $56,600 $20,700 $14,500 $26,600 2. MC Qu. 143 The following financial information is from Shovels Construction ... The following financial information is from Shovels Construction Company. Accounts payable $14,500 Buildings Cash Accounts receivable Sales tax payable Retained earnings Supplies 83,000 12,100 10,200 3,500 46,600 40,100 Notes payable (due in 18 months) Interest payable Common stock 27,000 1,100 52,700 What is the amount of current assets, assuming the accounts above reflect normal activity? $62,400 $145,400 $115,100 $22,300 3.MC Qu. 181 Frosty Inc. has the following balances on December 31 prior ... Frosty Inc. has the following balances on December 31 prior to closing entries: Revenues Retained Earnings, Jan. 1 Cash Expenses Accounts Payable Dividends Supplies $42,100 9,100 8,300 23,600 2,300 2,700 18,900 Based upon the balances above, what net adjustment would be made to Retained Earnings due to closing entries? Increase of $18,800 Increase of $17,800 Increase of $15,800 Increase of $16,800 MC Qu. 75 The following events pertain to Bills Compa... 4. The following events pertain to Bills Company: December 28, 2018 Bills was contacted by a customer for possible accounting an tax services. December 30, 2018 Bills signed a formal agreement with the customer to provide accounting and tax services in 2019. January 4, 2019 The customer paid $1,000 in advance for the services to be provided by Bills Company. January 11, 2019 Bills provided accounting and tax services to the customer. Using accrual-basis accounting, on which date should Bills Company record revenue for the accounting and tax services? December 31, 2018. January 11, 2019. December 30, 2018. January 4, 2019. MC Qu. 56 The revenue recognition principle states tha... 5. The revenue recognition principle states that: Revenue is a component of common stock. Revenue should be recognized in the period goods and services are provided. Revenue should be recognized in the balance sheet. Revenue should be recognized in the period the cash is received. 6.MC Qu. 136 In the statement of stockholders'... In the statement of stockholders' equity, Retained Earnings had a beginning balance of $25,000. During the period, the company reports a net income of $10,000 and a dividend of $4,000. The ending balance in the Retained Earnings account is: $35,000. $31,000. $10,000. $39,000. 7.MC Qu. 154 The following table contains financial info... The following table contains financial information for Trumpeter Inc. before closing entries: Cash $12,000 Supplies 4,500 Prepaid Rent 2,000 Salaries Expense 4,500 Equipment 65,000 Service Revenue 30,000 Miscellaneous Expenses 20,000 Dividends 3,000 Accounts Payable 5,000 Common Stock 68,000 Retained Earnings 8,000 What is the amount of Trumpeter's total assets? $82,500. $68,500. $81,500. $83,500. 8.MC Qu. 5 (LO3-2) Under cash-basis accounting, companies... Under cash-basis accounting, companies typically record revenue: In the period in which goods and services are prepared to be sold to customers. In the period in which we provide goods and services to customers. In the period in which we received cash from customers for goods and services. In the period in which customers order goods and services. 9.MC Qu. 3 (LO3-1) Under accrual-basis accounting, companies... Under accrual-basis accounting, companies typically report expenses: In the same period in which an asset is purchased. In the same period in which a liability is paid. In the same period as the revenue they help to generate. In the same period in which cash is paid. 10.MC Qu. 12 (LO3-3) The adjusting entry to record... The adjusting entry to record interest earned during the period includes a: Credit to Cash. Credit to Interest Revenue. Debit to Interest Expense. Debit to Cash